(a) In general

The Tariff Act of 1930 (19 U.S.C. 1304 et seq.) is amended by inserting after section 592A the following:

592B. Civil penalties for fraudulent, grossly negligent, or negligent entry of unauthorized electronic nicotine delivery systems

(a) In general

It shall be unlawful for any person to enter, introduce, or attempt to enter or introduce an unauthorized electronic nicotine delivery system into the customs territory of the United States.

(b) Penalties

(1) In general

A person who violates subsection (a), whether through fraud, gross negligence, or negligence, shall be subject (subject to paragraph (2)) to the following penalties:

(A)

For a violation involving fraud, not to exceed $5,000 per unit of unauthorized electronic nicotine delivery system.

(B)

For a violation involving gross negligence, not to exceed $1,000 per unit of unauthorized electronic nicotine delivery system.

(C)

For a violation involving negligence, not to exceed $500 per unit of unauthorized electronic nicotine delivery system.

(D)

If the shipment containing the unauthorized electronic nicotine delivery system involved transshipment through a third country for purposes of evading applicable duties, falsifying or concealing the country of origin, or any other scheme designed to evade applicable customs laws, an amount not to exceed twice the amount of the penalty otherwise applicable to the violation.

(E)

If the violation is the second or subsequent violation of section (a) by the person during a 3-year period, an amount not to exceed 3 times the amount of the penalty otherwise applicable to the violation.

(F)

If a violation is described in both subparagraphs (D) and (E), an amount not to exceed 5 times the amount of the penalty otherwise applicable to the violation.

(2) Maximum penalty

The penalties imposed under paragraph (1) with respect to a shipment containing an unauthorized electronic nicotine delivery system may not exceed an amount that is 1,000 percent of the estimated retail value in the United States of the shipment.

(3) Calculation of entries

Each entry or attempted entry in violation of subsection (a) shall constitute a single violation, regardless of the number of units contained in the entry.

(c) Procedures

The procedures set forth in section 592 for the assessment, mitigation, collection, and judicial review of penalties shall apply to penalties imposed under this section, except as otherwise provided in this section.

(d) Savings clause

Nothing in this section shall be construed to limit the authority of U.S. Customs and Border Protection, the Food and Drug Administration, the Department of Justice, or any other Federal agency to pursue any civil, criminal, or administrative remedy otherwise available under law with respect to unauthorized electronic nicotine delivery systems.

(e) Definitions

In this section:

(1) Estimated retail value

The term estimated retail value in the United States, with respect to a shipment, means the aggregate price at which the unauthorized electronic nicotine delivery systems in the shipment would be sold to end consumers in the ordinary course of trade in the United States, as determined by the Commissioner of U.S. Customs and Border Protection by regulation.

(2) Person

(A) In general

The term person includes any individual, corporation, partnership, limited liability company, trust, or other entity.

(B) Common ownership

For purposes of subsection (b)(1)(E), 2 or more persons shall be treated as a single person if those persons are under common ownership of 25 percent or more, share a majority of officers or directors, or are otherwise under common control, as determined by the Commissioner of U.S. Customs and Border Protection by regulation.

(3) Unauthorized electronic nicotine delivery system

The term unauthorized electronic nicotine delivery system means an electronic nicotine delivery system that is not authorized under section 910 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 387j), or any other provision of that Act, for introduction or delivery for introduction into interstate commerce.

(4) Unit

The term unit means each individual electronic nicotine delivery system device, cartridge, pod, or other discrete article intended for separate consumer use.

(b) Applicability

Section 592B of the Tariff Act of 1930 applies to the entry or introduction of, or attempt to enter or introduce, an unauthorized electronic nicotine delivery system into the customs territory of the United States after the date of the enactment of this Act.